Connect with us

News

FSP decries questionable Kantale sugar factory deal

Published

on

By Rathindra Kuruwita

The Frontline Socialist Party (FSP) and the Professionals’ National Front (PNF) yesterday condemned the proposal to hand over the Kantale Sugar Factory and 21,000 hectares of land that belongs to it to a Singapore-based company.

FSP Education Secretary, Pubudu Jayagoda said that the land would be leased for 30 years and that it was likely that the Cabinet would approve a questionable proposal submitted by Minister of Finance, Basil Rajapaksa, on 07 February 2022.

Jayagoda said that the factory had been established in 1960 with Czechoslovakian aid.

“At that time, Czechoslovakia was a socialist country. The factory was privatised in 1993, but even then, it was closed in 1999, it was producing 16,000 tons of sugar and 3.9 mil litres of alcohol.”

In 2015, the Yahapalanaya government tried to establish a company, MG Sugars Lanka Pvt. Ltd, with a Singapore-based company, SLI Developments Pte. Ltd, as a partner. The state was to hold 51% of the shares of the company.

A shareholders’ agreement was signed between MG Sugars, the Government of Sri Lanka and SLI Developments in 2016. SLI is connected to UK-based investors Mendel Gluck, Robert Salem and Moussa Salem.

“According to this agreement, the factory and nearby land were to be given to the company. Of the 21,000 hectares that belong to the factory, sugar cane was to be grown in 14,000 hectares and 7,000 were to be given to farmers. The water for the farming was to be taken from Kalu ganga, a tributary of the Mahaweli River,” Jayagoda said.

Gluck and the Salem brothers used K.P. Nagaraja, an Indian national to establish the business. There was a dispute between the investors and Nagaraja, and that resulted in a court case.

“In August 2019, August a Singaporean arbitration court said that there was a need to change the agreement. Subsequently, in July 2020, the Director Board was changed and a new agreement presented. On 09 August 2021, the Cabinet approved the new 30-year lease agreement. Earlier, on 05 August a MoU had been signed. However, this was different from the earlier agreement,” he said.

While under the previous agreement, the factory and nearby land was to be under the new company, the 2021 agreement had proposed to hand over the entire land to the company. Instead of taking water from Kalu Ganga, the water was to be taken from the Kantale tank.

“Although the government was to own 51% of the shares, Moussa Salem was to be the Chairman of MG Sugars. Gluck was to be the CEO. Thus, SLI would run all the operations. This will also mean that farmers in the area will face water shortages because Kantale Tank is an important source of water,” the FSP Education Secretary said.

The project to revive the Kanthale Factory is expected to cost USD 300 million, but SLI will only invest USD 70 million. However, according to the agreement 85% of the profits in the first 10 years will go to SLI. 75% of the profits in the second 10 years will go to SLI.

“The government will get 51% of the profits only in the third decade. Sri Lanka will make most of the investments but will make a pittance. This is a serious issue,” he said.

Meanwhile, Eng. Kapila Renuka Perera of the PNF said that this agreement would only lead to a monopoly, which will be disastrous for Sri Lankans. He added that given that all lands will be given to MG Sugars, Sri Lankan farmers will not be benefitted.

“The agreement also allows the company to import unpurified sugar, purify it here and re-export. This will be done with virtually no oversight. Previous governments too have come into agreements that lead to monopolies, like wheat, and these only had negative impacts on us. This will also have similar results. A few people will benefit at the country’s expense,” he said.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Govt. urged to withdraw Media Professionals Bill

Published

on

The Sri Lanka Press Institute (SLPI) and several leading media organisations have expressed strong opposition to the proposed Chartered Institute of Media Professionals of Sri Lanka (CIMP) Bill, urging the Government to withdraw the legislation and engage in consultations with stakeholders.

In a joint statement, the SLPI, together with its constituent organisations—the Newspaper Society of Sri Lanka (NSSL), the Editors’ Guild of Sri Lanka (TEGOSL), the Free Media Movement (FMM) and the Sri Lanka Working Journalists Association (SLWJA)—as well as affiliated bodies including the Muslim Media Forum (MMF), the Tamil Media Alliance (TMA), the Federation of Media Employees Trade Union (FMETU) and the South Asia Free Media Association (SAFMA) – Sri Lanka Chapter, said their primary objection was the government-led nature of the proposed institute.

Full text of the statement: The Sri Lanka Press Institute (SLPI), and its constituent partners, the Newspaper Society of Sri Lanka (NSSL), The Editors’ Guild of Sri Lanka (TEGOSL), the Free Media Movement (FMM), the Sri Lanka Working Journalists Association (SLWJA) together with its affiliated organizations, the Muslim Media Forum (MMF), the Tamil Media Alliance (TMA), The Federation of Media Employees Trade Union (FMETU), the South Asia Free Media Association’s SL Chapter (SAFMA) object the proposed Chartered Institute of Media Professionals of Sri Lanka (CIMP) Bill.

Our primary objection stems from the government-led nature of this initiative. History shows that robust professional bodies, such as the Institute of Engineers and the Sri Lanka Institute of Architects, were founded and drafted by the professionals themselves before being incorporated by Parliament. In contrast, the CIMP is a state-driven project ordered to be published by the Minister of Health and Mass Media despite objections raised by media’s professional bodies. We view this as an attempt to impose a state-managed regulatory framework upon a profession that must remain independent of government interference to function effectively.

The SLPI, its constituents and affiliated organizations maintain that professional media standards must be self-regulated in principle and led by the media community, not mandated by law under ministerial oversight. The SLPI has presented an alternative mechanism, viz., the Sri Lanka Media Commission (SLMC), based on co-regulatory and self-regulatory principles, which improves professionalism. In addition, the Sri Lanka College of Journalism, which is recognised by the media industry for training journalists for more than two decades, could also be an alternative way of building relevant journalism standards with government financial support if it intends to genuinely promote media professionalism.  We call upon the government to withdraw this Bill and engage in a genuine dialogue with stakeholders that respects the autonomy and freedom of the media in a democracy.

Continue Reading

News

Fort Magistrate orders arrest of MP Archchuna

Published

on

Archchuna

The Fort Magistrate’s Court yesterday issued a warrant for the arrest of Jaffna District MP Ramanathan Archchuna after he failed to appear before court in connection with a pending case.

Court officials said the MP and his bail sureties were absent when the matter was taken up, prompting the Magistrate to issue the warrant.

The case relates to an alleged incident in which Archchuna is accused of obstructing the duties of Fort Police officers while they were performing their duties.

The matter was listed before the Colombo Magistrate’s Court yesterday as well, when the MP failed to appear before court and his bail guarantor was also absent. Following this, the Magistrate ordered that a warrant be issued against him.

The case is to proceed with further legal action against the MP.

Continue Reading

News

Dengue rages with average of 2,391 new cases detected daily 

Published

on

Sri Lanka’s dengue outbreak has continued to worsen, with the number of infections reported this year surpassing 80,000, according to official surveillance data.

The country recorded 80,114 dengue cases as of midnight on July 23, while health authorities reported 59 dengue-related deaths, resulting in a case fatality rate of 0.07%.

The National Dengue Control Unit said that by Week 29, a total of 175 Medical Officer of Health (MOH) areas had been identified as high-risk zones, with an average of 2,391 new cases being reported daily.

July has emerged as the worst month of the year so far, with 24,739 cases recorded, while June also saw a significant surge with 21,534 infections.

The Western Province continues to account for more than half of the country’s dengue burden, with Gampaha recording 16,950 cases and Colombo 16,091 cases. Together, the two districts account for more than 40% of total infections reported nationwide.

Other districts recording high numbers include Matara with 5,534 cases, Kandy with 4,827, Kalutara with 4,545, and Ratnapura with 4,428 cases. The Colombo Municipal Council area alone has reported over 3,200 dengue infections.

At provincial level, the Southern Province has recorded 12,143 cases, followed by the Central Province with 6,686 and Sabaragamuwa with 6,607. Meanwhile, the North Western, Eastern, Uva, North Central and Northern provinces have reported 3,844, 3,148, 2,154, 1,264 and 1,173 cases respectively.

Health authorities have urged residents, particularly those living in high-risk areas, to intensify mosquito-control measures and seek immediate medical attention when dengue symptoms appear, warning that the situation could deteriorate further without sustained preventive action.

Continue Reading

Trending